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This paper describes the development of Mando's new continuously controlled semi-active suspension system. The goals for the new system are 1) enhanced control performance and functionality for customer satisfaction and added value, 2) optimal design of variable valve for compact size, light weight and fast response. Based on the system requirements established from benchmarking and market needs, design of variable dampers, an ECU, sensors and control algorithms is carried out. Skyhook control is applied with a better road detection algorithm by using vertical wheel G sensors. New “Comfort” mode biased toward smooth ride adds more value to the vehicle. Co-operation with ESP helps increase the vehicle stability. Well-defined design procedure and test methods for verification and validation are followed. Simulation study, rig and vehicle integration test prove that the design goals are met.